UAW, Stellantis reach tentative contract deal, strike ending

Stellantis and the UAW reached a tentative labor contract agreement Saturday that includes a 25 percent raise for workers over the life of the pact, a commitment to revive the idled Belvidere Assembly plant in Illinois and nearly $19 billion in new U.S. investments.

The UAW said roughly 14,000 striking workers will return to the job as the tentative contract goes to a vote of Stellantis union leaders on Thursday in Detroit, followed by the rank-and-file members.

“Once again, we have achieved what just weeks ago we were told was impossible,” UAW President Shawn Fain said in a statement Saturday. “At Stellantis in particular, we have not only secured a record contract, we have begun to turn the tide in the war on the American working class."

The UAW said Stellantis wanted to slash 5,000 jobs and close its Trenton Engine facility in Michigan and its Toledo Machining plant in Ohio. The union was able to save both sites, secure commitments to reopen Belvidere and get the company to add 5,000 jobs over the course of the contract.

Fain said Stellantis put 103 percent more on the table since the strike began Sept. 15.

“Today, as we announce that we have reached a tentative agreement with the UAW on a new labor contract, I would like to thank all the negotiating teams who have worked tirelessly for many weeks to get to this point,” Stellantis North America COO Mark Stewart said in a statement. “We look forward to welcoming our 43,000 employees back to work and resuming operations to serve our customers and execute our Dare Forward 2030 strategic plan to maintain Stellantis’ position at the forefront of innovation.”

UAW leaders, in a video Saturday evening, said Stellantis promised to add midsize truck production on two shifts at Belvidere, which has been idle since February. They also said the company plans to add more than 1,000 jobs at a new battery plant there.

"We have saved Belvidere,” UAW Vice President Rich Boyer said in the union's statement. “Eight months ago, Stellantis idled Belvidere Assembly Plant, putting 1,200 of our members on the street. From the strength of our strike, we are bringing back those jobs and more.”

The UAW said the agreement follows the pattern set by the tentative deal reached with Ford Motor Co. earlier this week. The tentative deal gives 25 percent wage increases to members through April 2028.
 
When combined with restored cost-of-living adjustments, the union said top wages will rise 33 percent compounded to more than $42 an hour. Starting wages, around $18 an hour today, will increase by 67 percent compounded with estimated cost-of-living adjustments to more than $30 an hour.

The lowest-paid workers at Stellantis, temporary workers, will see a raise of more than 165 percent over the life of the agreement. Some workers at Mopar will receive an immediate 76 percent increase upon ratification.

Fain said “thousands” of temporary workers will be converted to full-time status upon ratification, and that no worker will remain in temporary status for more than nine months after ratification. Temporary workers currently make up roughly 12 percent of Stellantis’ U.S. work force, the most among the Detroit 3.

The deal also includes 401(k) and pension enhancements for current workers and retirees, the UAW said. It includes the right to strike over plant closures, and the right to strike over product and investment commitments, which the union says is a first.

“We truly believe that we got every penny possible out of this company,” Fain said. “We left nothing on the table.”

The 44-day strike, which remains ongoing at General Motors, threw a wrench into Stellantis' parts operations and halted production of key models such as the Ram 1500 and Jeep Wrangler.

More than 14,000 workers picketed in the targeted "stand-up" strike against Stellantis at its Toledo Assembly Complex in Ohio that builds the Wrangler and Jeep Gladiator midsize pickup, Sterling Heights Assembly in Michigan that produces the Ram 1500 and 20 Mopar parts distribution centers across the U.S.

The strike led to Stellantis laying off more than 2,000 workers at numerous facilities, such as its stamping sites in Warren, Mich., and Sterling Heights.

When the union directed its members at Sterling Heights Assembly to join the strike on Oct. 23, Stellantis already had an offer on the table that included a 23 percent raise. Several workers on the picket line were pleased with that figure, while others wanted more.

One worker, David Owens Sr., was hoping for a 32 percent wage hike. Sheushea Anderson, who's been at the Sterling Heights plant for 13 years, wasn't impressed, saying the previous 23 percent offer was the "least they can do."

Now that the number is settled at 25 percent, workers with varying opinions will make their voices heard on wages and other issues as they decide whether to ratify.

The return of the Belvidere plant, which last built the Jeep Cherokee until its February idling, would be a boon to the region. The factory served as a lifeline for generations of workers since opening in 1965 with a production slate that included the Dodge Omni and Chrysler Town & Country station wagon.

Stellantis still faces an 11:59 p.m. EDT strike deadline in Canada on Sunday as talks continue with Unifor there.